To: FMD Planners/Project Managers

Page 2

MEMO

To: FMD Planners/Project Managers

From: Melissa Hopkins

Date: 12/1/14

Re: Change Order Definitions

There are currently thirteen options for “basis of change order” on our standard change order form. They include:

Architect/Engineer Error

Architect/Engineer Omission/Revision

Code Issue

Contract Assignment

Field Condition

GMP Amendment Change Order

Owner Add/Delete Original Scope

Accounting Adjustment

Allowance Use

Design Modification

Value Engineering

Differing Condition

Other

As an FMD Planner/Project Manager, you are required to track all change orders using these categories and as part of your project closeout these changes will be reviewed by the Director or equivalent.

Architect/Engineer Error: A change caused by an error in the contract documents where the completed work in the field will have to be modified and/or potentially dismantled and rebuilt.

Architect/Engineer Omission: A change caused by an omission that was intended to be included in the contract documents or should have been included within the “standard of care” of the profession. The deletion did not allow the work to be competitively bid along with the main scope of work resulting in a premium cost for a separate pricing exercise.

Code Issue: This is for a change required by the Authority Having Jurisdiction over the project for the pertinent scope of work.

Contract Assignment: This is most often associated with a University direct-purchase that is assigned to the GC for a fee percentage for coordination of the work in the field associated with the assignment.

Field Condition: This is most often associated with a hidden condition or unknown that arises during the normal course of the work. This is typical written as a Time and Materials – not to exceed amount. An example of new construction is encountering a pocket of poor soil or coordination of trades that would have been difficult to anticipate in the design phase.

GMP Amendment Change Order: This is an amendment for a GMP contract that was originally written as an “Initial GMP” - based on incomplete contract documents at that time. Once the scope is completely developed to the point where the CM can provide a reliable GMP amount, a change order amendment is written to the GMP contractor for the “Final GMP” amount.

Owner Add/Delete Original Scope: An increase or decrease in the scope of work outlined in the contract documents either related to the Program that benefits the User or the Program that benefits the University. Examples could be additional casework, moving a wall, higher level finishes or a change in the Building Design Standards.

Accounting Adjustment: This is used to close out a purchase order or to reduce the amount of a not-to-exceed contract that came in under the original estimate.

Allowance Use: This refers to a change order that is written toward a previously identified scope of work where an allowance (set aside) was set up in the project budget as the scope was not clearly defined at the time of bid.

Design Modification: This is written for the instances where the Architect/Engineer provides a change in the contract documents that clarify scope or provide value to the University.

Other (please specify): Conditions that do not fit the other definitions. An example would be a code official making a determination that was gray and affecting a condition in the field such as a fire rating or addition of exit signs.

Using the above definitions, the table below must be completed by the PM with the accompanying change order documentation and sent to Project Accounting for processing.

Project#
Vendor
PCO/COR#
PCO Date
PCO REASON - (pick one)
Architect/Engineer Error
Architect/Engineer Omission/Rev.
Code Issue
Contract Assignment
Field Condition
GMP change order
Owner Add/Delete Original Scope
Accounting Adjustment
Allowance Use
Design Modification
Other (please specify)
PCO PAYMENT TYPE/TERM
T&M Based on Actuals
T&M Not To Exceed
Lump Sum